Digital TV delay could cost Qualcomm 'tens of millions'

The Senate Monday approved a bill that would delay until June broadcast television's long-planned transition to all-digital services. All full-power TV stations were expected to cease broadcasting their programs in analog format Feb. 17, but after President Obama expressed his support to delay the transition, congressional Democrats quickly mounted legislation in favor of the postponement. Consumers will now have until June 12 to purchase a digital television or converter box, or else subscribe to cable or satellite services.

The elimination of analog broadcasting enabled the FCC to auction wireless spectrum in the 700 MHz block--AT&T and Verizon Communications were the big winners of the auction, and have already indicated they can support a one-time, short extension of the transition. Less supportive of the delay is Qualcomm, which spent more than $500 million acquiring eight licenses in the spectrum auction to expand its MediaFLO USA mobile broadcast service. In December, MediaFLO USA said it plans to increase its coverage from 63 metro areas serving 140 million subscribers to more than 100 markets serving 200 million by the close of 2009, increasing its mobile TV footprint by more than 40 U.S. cities beginning Feb. 17.

According to a letter written by Qualcomm CEO Paul Jacobs to the chairmen and ranking members of the Senate Commerce, Science and Transportation Committee and the House Energy and Commerce Committee, the congressional delay is "unfair, unjust and inappropriate," and pits the interests of 2 million analog TV customers against the 40 million wireless consumers in areas not yet served by mobile TV. "To be clear, any delay of the DTV transition date will prevent 40 million Americans from enjoying our MediaFLO service, and will penalize Qualcomm for having acted as a responsible FCC licensee in following the law and making the investments necessary to turn on our transmitters as soon as the DTV transition ends on February 17, 2009," Jacobs writes in the letter, published in part in the San Diego Union-Tribune. Qualcomm adds it stands to lose "tens of millions of dollars" by delaying the transition to June.

For more on the Senate's digital TV delay:
- read this New York Times article